Enforcement: HK SFC issues two banning notices

In the case of KO, the SFC's order made the 24th September follows on from an investigation by the Hong Kong Monetary Authority in which the HKMA uncovered evidence that Ko:

• effected two investment transactions involving over HKD3.5 million in the investment account of a client at Hang Seng Bank Limited (HSB) without the client’s knowledge and authorization on 11 July 2007;
• deceived his former employer HSB by preparing and providing false information on bank documents, including two order forms for investment products and a Risk Profiling Questionnaire (RPQ), purported to have contained information about the client, all dated 11 July 2007;
• forged the signature of the client on the RPQ; and
• asked the client to lie to HSB that the client had authorised him to conduct the relevant transactions, with a view to concealing his misconduct.

At the relevant time, Ko was a relevant individual whose name was entered in the register maintained by the Hong Kong Monetary Authority under section 20 of the Banking Ordinance, Cap. 155 as a person engaged by Hang Seng Bank Limited to perform Type 1 (dealing in securities), Type 4 (advising on securities) and Type 7 (providing automated trading services) regulated activities.

Ko has been prohibited from entering the industry for ten years.

In the case of Tong, the order was made on 22 September and again arose from an investigation by the HKMA. The investigation found that Tong had operated a secret account under the name of his mother-in-law, and approved the credit facilities of this account without disclosing to his employer his relationship with the account holder and his beneficial interest in this account. Tong’s conduct breached his employer’s staff dealing policy and deprived his employer of the opportunity to ensure compliance with the relevant laws and to monitor his trading activities that might be prejudicial to clients.

At the relevant time, Tong was a relevant individual whose name was entered in the register maintained by the Hong Kong Monetary Authority under section 20 of the Banking Ordinance, Cap. 155 as a person engaged by Fubon Bank (Hong Kong) Limited to perform Type 1 (dealing in securities), Type 4 (advising on securities), Type 6 (advising on corporate finance) and Type 9 (asset management) regulated activities.

Tong has been prohibited from entering the industry for ten months.